Taxation
Introduction
In India There are two types of taxes
1. Direct tax
2. Indirect taxes
Direct taxes are like income tax
Indirect taxes are like Value Added Tax, Sales tax, Excise Tax,
Service Tax, Registration Tax, and Custom Tax.
Indirect taxes will cover entire population and direct taxes
will cover the population who has some income.
Subject
Recent struggles
of cloth merchants to roll back Value added tax increase by State Government
and recent shut down by Jeweler merchants for 21 days to roll back tax on Jewellery.Why
this Unrest because of bad financial management by the both state and central
government.
In this context
Union budget 2012-13 increased the taxes to burden the people who are heavily
burdened by various aspects of life like severe inflation of essential
commodities. The Middle class bearing the burden of taxes. For instance the
actual cost of the Liter petrol is 39/-The remaining component of the cost of
the petrol is taxes levied by both central and state governments. Especially in
Andhra Pradesh the tax is very high that is 33 percent of VAT component which
is highest in India. For Example Goa reduced the cost of the petrol recently by
reducing the VAT tax. Like that you have to pay the tax on every good. For
Instance if you buy salt you have to pay the tax. Except the air everything
taxed in this country.
There are various types of taxes we pay or face every day
1. Value added tax
2. Customs Tax
3. Registration Tax
4. Service tax
5. House tax
6. Electricity Surcharge
7. Water Tax
8. Toll gate tax
9. Income tax
For instance
how the taxes work against us.
When you go to restaurant
for eating the following taxes will be levied on you
- Value added tax
- Service charge
- Service tax
Entire three taxes will be
added up to 33% When eat of hundred you have to pay the bill of 133/-
Recently service tax is increased to 10 to 12%. Already the people are suffering from high
inflation of essential commodities further more taxes are increased in recent budget.
Apart from the taxes we have to pay various Surcharges and Education
cess.Education cess is 3 percent levied on Income taxes assesses. All types of
taxes will have impact the consumer because tax burden will passed to the
consumer only.
Every
aspect of citizen is surrounded by heavy taxes by both central and state
governments.
Hence I kindly request our finance minister to reduce waste expenditure
for example cost of central government ministers travel is 409 crore this year but budget approval is only 96crore. Recent RTI act query revealed that cost of
our President travel to foreign countries is highest this year.
Schemes
of social attraction must be properly targeted and properly monitored to reduce
the expenditure or to reduce the revenue deficit.
Hence prudent expenditure management is required rather than easy way of
increasing taxes.
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